Energean sees 2018 FID for Karish, Tanin fields

Energean Oil & Gas expects to make a final investment decision (FID) for the Karish and Tanin fields offshore Israel in early 2018 as new gas sale purchase agreements (GSPAs) provide further momentum for the FID.

Karish and Tanin fields. Source: Energean

Energean announced today (7 December) it has signed GSPAs totaling up to 2.6 Bcm of gas with Israel Chemicals, Bazan Oil Refineries, and independent power producer OPC. Energean also inked a GSPA totaling up to .3 Bcm with Rapac Group, a firm focused on telecom, government, energy and infrastructure.

The firm previously had signed GSPAs with Dalia Group, Dorad Group, and Edeltech Group. The new and existing agreements bring the total committed purchase volume to over 4 Bcm a year of gas from the fields.

“These supply commitments, surpassing our initial 3 Bcm per year target, demonstrate the strength of the local gas demand,” said Energean CEO Mathios Rigas, adding that Energean looks forward to unlocking significant further potential from the fields.

In September, the Israeli Petroleum Commissioner approved Energean’s field development plan for Karish and Tanin. This plan calls for the drilling of three wells, which would produce via a 400 MMscf/d capacity floating production, storage and offloading vessel. Energean submitted the plan in June. In February, Energean gained funding and a partner for the Karish and Tanin fields, Kerogen Capital.

Development of Karish and Tanin, located 90km offshore Israel, is estimated at US$1.3 to $1.5 billion. Karish and Tanin hold 2.7 Tcf of gas and 41 MMboe of light crude, or total 2C resources of 531MMboe. First gas production is expected in 2020.